A model reciprocal non-disclosure agreement (NDA) on exchange of secret information to be exchanged before a formal agreement is signed to ensure that the information is legally obliged to be kept secret by the recipient.
How should employers react to a recent case that casts doubt on when restrictive covenants are enforceable?
An ex-employee who made negative remarks about the financial situation and management of the company from which he had resigned as managing director did not breach the limited implied duty of confidentiality which binds a former employee, holds the Court of Appeal in Brooks v Olyslager OMS (UK) Ltd.
In FSS Travel & Leisure Systems Ltd v (1) Johnson (2) The Chauntry Corporation Ltd the Court of Appeal holds that an employer failed to adduce sufficient evidence to identify and establish that it possessed trade secrets which required protection by means of a restrictive covenant.
In Lancashire Fires Ltd v S A Lyons & Co Ltd and others the Court of Appeal holds that an employee with access to confidential information about a manufacturing process unique to his employer's business acted in breach of his duty of fidelity by making preparations to set up in business on his own account using that process.
In Norbrook Laboratories Ltd v Smyth the High Court in Northern Ireland holds that a restrictive covenant which was signed by an employee in the course of employment was binding in law. The court further holds that the confidentiality clause should not be regarded as void for being In restraint of trade even though the restriction was world-wide and was to last for one year alter the employment ended.
HR and legal information and guidance relating to confidentiality clauses.